Suppose that you just purchased 200 shares of Beta Banana's stock for $60 per share....
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Finance
Suppose that you just purchased 200 shares of Beta Banana's stock for $60 per share. The initial margin requirement is 70.0%, which means the amount borrowed is $3,600. The corresponding balance sheet is below: Assets Liabilities and Equity Stock $ 12,000.00 Loan from broker $ 3,608.00 Equity $ 8.480.00 Total assets $ 12,888.00 Total liabilities and equity $ 12,000.00 Required: a. Now suppose the price of the stock falls to $37 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) Margin percentage % 'b. Construct the balance sheet to show the current situation. Assets Stock Liabilities and Equity Loan from broker Equity Total liabilities and equity Total assets
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